IFA Centre IFA
Choweree House, 21 Boutport Street, Barnstaple, Devon EX31 1RP | (Tel) 01271 344300 | info@miltonpj.net
Founded in 1985, Philip J Milton & Company was incorporated in 1996 as a public limited company (Plc) with an authorised share capital of £1 Million.

Philip Milton's Latest Comments: 23 November 2015

Dear Friend

Top 100 Advisers
We have made it again into New Model Adviser’s top 100 advisory firms across the Country. See:- http://goo.gl/eU44LS Yes, they have mis-spelt the name but never mind!  It is a great accolade to be amongst this esteemed bunch and reassures clients, staff and prospective clients alike that they are dealing with a Firm which has some dependable substance behind it and in our thirtieth anniversary year too.

Investment Ideas
Continuing our investment ideas, here is the next.  To remind you, I am not naming these as that unleashes regulatory obligations but this is just a flavour of the types of things we may pursue for clients and which are unlikely to have been offered to you from elsewhere!  Prices and so on are as at the time of writing and of course will vary.  If you want to participate, the only way to do so with ourselves is to entrust some capital to us through an ISA, Portfolio, Pension Fund or whatever and we may buy some for you as part of a diversified strategy.

Idea 10 - another Investment Trust.  It has been inexistence for a very long time and is slightly odd in that alongside mainstream shares it also owns a portfolio of commercial properties all rented-out.  For £2.55 you buy a unit with assets worth £3.18, so a discount of 20%.  This means that if the shares rise to reflect the underlying wholly transparent asset value, you make 25% for doing nothing.  Meantime you earn a dividend which should be in the region of 3.4% on your stake for the income from the profits of the underlying companies in which the fund invests.  The Trust is worth £116million so still ‘small’ for many bigger managers who won’t touch it as it is too small for them to participate – but that, to us, makes it a better opportunity and we have been taking it.

So what returns do we expect for our clients who hold the fund for the next few years?

1. The removal of some of the ‘discount’ in pricing, so an extra return for doing ‘nothing’.
2. Rising dividends and an income from 125% of our investment effectively!
3. Ongoing progress =from the ordinary shares in its portfolio as well as steady progress from its property portfolio and rising rentals

Our Charity Partners
On our thirtieth anniversary we partnered Tear fund to celebrate our success and to give something back.  The particular projects which Philip J Milton & Company Plc supports are self-help groups in Ethiopia and there is an opportunity under the ‘Big Give’ whereby every Pound donated is doubled!  Gifting is between 4 – 14 December and the initiative means that every gift made direct to ‘The Big Give’ can not only benefit from Tax Relief but is boosted tremendously during this short window.

If you’d like to participate, please follow the links! Please give what you can via the Big Give this December. Tear fund’s own website is: - www.tearfund.org

Stock Shorting
Supermarket group Morrison’s is one of the most shorted stocks on the UK market at the moment with 20% of the stock out on loan to hedge funds which have sold the shares, further depressing the price and hoping they can buy them back later at a cheaper price to make a profit.  I have to say that in such excess, such activities should not be tolerated as it does not create an orderly market and share prices should be allowed to better reflect buyers and sellers’ sentiments, not artificial hype creating a trend of self-fulfilment in many instances.  This policy allowed the banking sector to become excessively depressed at just the wrong time of the collapse and is not only unhealthy but as I say, a bad move for orderly markets in a stock.  There could be percentage limits set so the theoretical benefit to improved tradability is preserved.  Meantime, let’s hope a nice bid or something arises to sting them all so they have to buy-back to cover their positions far higher than the levels at which they have already sold.

Pensions and Planning For the Future
Just how long are you going to live?  No, this link isn’t a direct line to God but a simple calculator so you can have an idea based on suitable averages – most of us underestimate how long we could survive and therefore the length of time for which we need to provide funds.  Check this: - http://visual.ons.gov.uk/how-long-will-my-pension-need-to-last/  it will tell you your chances of making 100 too!  If you need some guidance in relation to the sums of capital (or pension values) you should accrue to fund a comfortable retirement, then please contact us for help.  We can help guide your planning and methods of making that provision as well!

Investment Income
We have just verified the latest projected income yields for clients’ strategies and they remain attractive.  For example, £10,000 invested in either of our two mainstream ISA models should generate a dependable income north of 4% and the High Security, Higher Income strategy, 6.25%pa.  Remember, these figures are just the income and do not impact the hopes for capital preservation and appreciation in the components.  The income is tax free and can be paid monthly or quarterly and can be simply the amounts received or a regulated regular sum based on a division of the anticipated annual sum based on your capital invested.

Mining Value
Just to return to Anglo American stock – which we still don’t own despite a further drop for the sector and oils – the shares are now at a fifty-year low on a ‘price to book’ basis.  Of course, it depends on how the book value of assets is valued but something will give and surprise to the upside – at some point.

Business Breakfast at Trimstone Manor Country House Hotel
Thursdays, 7.15am, we discuss business topics.  Open to all and only £8.50, please ring 01271 862841 or email.  Those in business or retired are welcome for business themed breakfasts including learning and counselling.  It’s VAT and Tax deductible.  We finish at 9.00am, to ensure your day isn’t interrupted.  Why not try us as a guest – its habit forming though!

Risk Warning

Stockmarket investments can offer income through the payment of dividends and interest and good opportunities for capital appreciation over the longer term. By this, generally we mean periods in excess of five years, preferably much longer. However, we can never promise you particular returns, especially in the short-term. At any point in time but especially in the short term, your capital could be worth less than the original amount invested as some of the selected holdings may fall in value, regardless of expectations at the time of acquisition. We may also invest in funds that hold overseas securities. The value of these investments may increase or decrease as a result of changes in currency exchange rates. Returns achieved in the past cannot be relied upon to be repeated.

To remind you, why do I send out occasional emails? Because everyone can save money. We have no connection with any companies mentioned and you have to make your own contacts and satisfy your own enquiries. What is in it for us? If we can prove that we are knowledgeable and that our service and advice have good value, then you might contact us for professional financial planning and investment help. You don’t have to do that though and there’s no charge for emails. If simply they save you money then accept them with our compliments! However, you’ll know where we are!

If you have any queries of any form or indeed any subjects you think I could include, please contact me. I also refer you to our website www.miltonpj.net. We celebrate our thirtieth anniversary in 2015 and have been publishing a well-respected independent column in the local Paper for most of that time and free client newsletters as well.

Do not forget however the usual caveats – this is not ‘advice’ and you are encouraged to seek that before embarking upon any financial route involving investments, etc.

My best wishes
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PHILIP J MILTON DipFS CFPCM FCIB FPFS
Chartered Financial Planner
Fellow of The Personal Finance Society

The Financial Conduct Authority does not regulate some areas mentioned on our web site including: Buy to Let Mortgages, Claims Management Activity, Taxation & Accountancy, Probate Administration and Will Writing.

Financial services complaints we cannot settle may be referred to the Financial Ombudsman Service; www.financial-ombudsman.org.uk 0800 023 4 567. Details of our complaints procedure are available via the documents tab above.

Risk Warning - Stockmarket investments can offer income through the payment of dividends and interest and good opportunities for capital appreciation over the longer term. By this, generally we mean periods in excess of five years, preferably much longer. However, we can never promise you particular returns, especially in the short-term. At any point in time but especially in the short term, your capital could be worth less than the original amount invested as some of the selected holdings may fall in value, regardless of expectations at the time of acquisition. We may also invest in funds that hold overseas securities. The value of these investments may increase or decrease as a result of changes in currency exchange rates. Returns achieved in the past cannot be relied upon to be repeated.

Philip J Milton & Company Plc is authorised and regulated by the Financial Conduct Authority.
Philip J Milton & Company Plc is entered on the FCA register (http://www.fca.org.uk/register) under reference: 181768.
# Registered Office: Choweree House, 21 Boutport Street, Barnstaple, Devon EX31 1RP
Registered and Incorporated in England number 3233275 | VAT number 682 2544 28
A list of the Directors is available from the registered office

 

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